MNI BRIEF: BOJ's Jan Real Export Index Drops 2.9% M/M

The Bank of Japan's real export index, calculated using Ministry of Finance trade data, fell 2.9% m/m in January for the second straight drop following a revised 4.5% decline in December

The figures were calculated by MNI based on BOJ data and confirmed by bank officials. The BOJ will release details of the index on Tuesday. The December data was revised up from a preliminary 4.7% decline. The January real export index fell 5.8% from the average index in the fourth quarter.

Bank officials expected exports and production to slow in the first quarter on the back of slowing overseas demand, mainly in the Chinese economy.

But they expect the two economic components to remain firm, supported by the waning of supply-side constraints and high levels of order backlogs for automobiles and capital goods.

Officials are paying attention to how the U.S. and Chinese economies evolve in of after the first quarter of 2023 and the impact on exports and production.